In the latest episode of our Money Bootcamp series, we discuss the sensitive topic of debt. While almost all of us need to use credit when it comes to purchasing a home or a car, if it is not managed carefully, it can become a debt trap which...
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Duped by a call centre and ending up trapped in debt review
Most of us have received spam calls promising to solve our debt problems and to reduce the interest rates on our loans. In some cases, the caller pretends to be representing the National Credit Regulator (NCR) or claims to be from some government...
How to break the cycle of debt
A strong theme that emerged in the Money Makeover Challenge this year was the extent to which applicants have built up large amounts of debt in a short period of time. This phenomenon is driven by the rising cost of living and increasing interest...
Understand what debt counselling means
Capitec recently sent out a warning to its customers about false advertising by certain debt counselling companies. The warning stated: “Have you ever been promised immediate debt relief or a payment holiday that doesn’t affect your credit score?...
When debt review works
Going into debt review is like going on a diet: it’s difficult to stick to and the results won’t be immediate, but it can be life changing. While there are serious issues around the way some debt counsellors conduct themselves, for Grace Bekwa,...
Don’t rush into debt review
While debt review can be a lifeline for an over-indebted consumer, it should not be entered into lightly. You need to be aware that once you enter debt review, you cannot apply for new credit, and you cannot exit debt review until all your debts...
Listen: Pros and cons of debt counselling
For many people COVID has had a major financial impact and some may be considering entering debt review. In this podcast Maya (@mayaonmoney) speaks to David O’Brien of debt counselling firm Meerkat to explain how debt counselling works and how to...
What to do if your debt counsellor goes AWOL
If your debt counsellor is not registered, or not contactable, or not providing you the required service, then you can transfer to another debt counsellor. All you have to do is approach a new debt counsellor and complete the application form. It...
Video: How to exit debt review
You can apply for debt review if you are unable to meet your debt commitments. However, in some cases, your finances may improve and you may wish to exit debt review. Whether or not you are able to exit will be determined by where you are in the...
When to consider debt counselling
As salaries struggle to keep up with inflation, and the economy in general continues to deteriorate, many middle- and higher-income earners are now relying more heavily on unsecured loans to maintain their lifestyles. As a result, many more South...
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Q&A: Debt Review
A recent court ruling provided clarity around exactly how and when an individual may exit debt review, but there is still a lot of confusion around the debt review process. I have recently paid off my car and some credit I had, but I still have four outstanding debts...
When can you exit debt review?
Many consumers commit themselves to debt review only to get cold feet several months later. For some, finding themselves cut off from credit lines is just too stressful, while others find their financial situation may have already improved. A recent court ruling...
What happens to your joint mortgage when your partner is placed under debt review?
Your joint mortgage may form part of your partner’s debt review without your consent. If you are married in community of property and your spouse is placed under debt review, so will you, because you share a joint estate which includes all debt. However, what about...
Why you shouldn’t be holding out for debt forgiveness
There is a misconception that debt intervention proposals currently being considered could mean that some debts are likely to be written off. The high levels of indebtedness in South Africa have led to parliamentary hearings, held by the portfolio committee on Trade...
A debt review success story
Four months ago, City Press reader Oscar wrote to us asking for help in finding a debt counsellor as, in his words, he was “broke because of debt.” After doing some research we found RD Debt Counselling and Oscar met with debt counsellor Russell Dickerson. After four...
Why save for a holiday when you can borrow?
We’ve lost the plot when it comes to borrowing and saving Recently I had a conversation with a young woman who, along with her husband, is under debt review. She told me that they had just let their lifestyle get ahead of them – they bought a house, went a bit...
The truth about debt review
Debt review is not as simple as handing over your bills to a debt counsellor – you have to keep track of your credit provider statements Three years ago Linda (not her real name) and her husband went under debt review. Like so many young couples, the allure of easy...
Voluntary withdrawal from debt review
You can withdraw from debt review if your financial situation has changed significantly or you only have your mortgage left to pay. Earlier this year new guidelines were issued as part of the National Credit Amendment Act (NCAA) around when a person may exit debt...
What to do when you fall behind on repayments
Lindi wrote to me looking for advice regarding her car repayments. She had fallen behind on her repayments to BMW Finance as her business was in financial difficulty. She wanted to find out if she could hand back the car to the financial institution and what the...
Become your own debt reviewer
By Wikus Olivier, debt expert at DebtSafe Debt is an issue that most South Africans unfortunately find themselves facing for most of their adult lives. Every individual deals with different forms and scales of debt, but for some, their debt spirals out of control....